IP Land Mine
Everyone thinks their idea is first of its kind. Better yet, they assume that an existing idea can be “primed” or “flipped” in a manner that will not result in repercussions. This is not always the case. Once you laser focus in on an idea that you with to pursue make sure you have performed diligence regarding any Intellectual Property filings – with a focus on patents. Often, a company with copious resources within a sector will invest – what to them is pennies – resources in future technologies as they seem fit. Should the product become commercialize down the road – and if their litigation department is formidable – they will use those patents as leverage to determine the outcome of stake within that sector. Once a company decides to place their resources into a product without due diligence on the amount of patents that have been filed they become inundated with expensive litigation that can end with being cannibalized by the plaintiff. This scenario is termed IP Landmine where as walking within this sector might engage a collateral explosion with limited to no recovery.